How does a green loan report its impact?
Under the principles of green lending, information on the use of the proceeds of a green loan is communicated annually to the institutions participating in the loan. GLP also recommends an external review process. However, self-certification by a borrower or investor with the technical expertise to confirm the alignment of the green loan with the key characteristics of GLP is considered sufficient.
In practice, the loan agreements for an IFC green loan include the client’s obligation to report annually on the allocation of the use of funds and to select impact indicators. IFC requires a second opinion confirming alignment with GLP. This requirement is waived in cases where 100% of the proceeds are used to finance green buildings certified by third parties. of its volume of long-term own account commitments between 2021 and 2025. IFC works with financial institutions to fund projects that will support mitigation and adaptation. Here are some of IFC’s recent / active green loans:
2019/2020 | IEnova (Mexico): $ 541 million
In Mexico, IFC structured and mobilized a Green loan facility of $ 541 million over 15 years to support Infraestructura Energetica Nova (IEnova). The green loan will finance the construction of five solar power plant projects in Mexico with a total installed capacity of 526 MW. These solar projects will displace carbon-intensive thermal generation in the country and remove approximately 793,000 tCO2eq per year. By funding IEnova’s first solar power generation projects, IFC seeks to support IEnova’s transition to a greener business model. Following IEnova’s adoption of green lending principles, this investment became the first IFC certified green loan in Mexico.
May 2021 | Sicredi (Brazil) | $ 120 million
In Brazil, IFC is helping to strengthen the financing of climate-friendly projects, particularly in the energy sector, through a green loan of up to $ 120 million to Sicredi. The loan will help diversify the country’s energy matrix, promote sustainability and support Brazil’s climate goals. The loan aims to strengthen Sicredi’s climate finance program, with a focus on photovoltaic (PV) projects in Brazil. This will allow the cooperative financial institution, with more than 5 million members, to finance renewable energy projects, promoting more sustainable practices in the use of energy.
May 2021 | AbSA (South Africa) | $ 150 million:
In South Africa, IFC granted Africa’s first certified green loan to Absa Bank Ltd. IFC provides Absa Bank Ltd., one of Africa’s largest financial services groups, a loan of up to $ 150 million support the bank’s strategy to expand its climate finance activities and help South Africa meet its greenhouse gas reduction targets.
July 2021 | NE Property BV (Romania) Loan: € 73.5 million
In its efforts to support the commercial real estate sector in Romania, one of the hardest hit by the COVID-19 pandemic, IFC has granted a green loan to NE Property BV, a wholly-owned subsidiary of NEPI Rockcastle, the largest owner of commercial buildings in Central and Eastern Europe. IFC 73.5 million euros of green loan will help build a strong green business infrastructure in the country, promoting low carbon economic growth.